Global Fracking Fluids and Chemicals Market Size, Trends & Analysis - Forecasts to 2026 By Function Type (Biocides, Friction Reducers, Gelling Agents, Cross Linkers, Scale Dissolvers, Corrosion Inhibitors, Others), By Fluid Type (Water-Based Oil-Based, Foam Based, Other Fluid Types), By Region (North America, Asia Pacific, Europe, Central & South America, Middle East & Africa); End-User Landscape, Company Market Share Analysis, and Competitor Analysis
Fracking Fluids and Chemicals Market Insights
The use of fracking fluids is highly appreciated in the American energy sector. The widespread use of fracking fluid and chemicals finds their high-end applications in the drilling of oil and gas. Modern age civilization consumptions of oil and gas have been on the rise as their daily needs surpass the supply of the product. As per the IEA estimates, the supply of oil is bound to rise by 5.9 mb/d. With the rise of the United States as the global superpower in the exploration of oil and gas, the market’s prospects will grow to compensate for the rising supply of oil across the globe.
The market in the past years has seen its demand rise due to the technological innovations to make the process of fracking more productive and through the use of the distinct forms of fracking liquid. The introduction of horizontal drilling and the mix of water, sand, and other chemicals with fracking fluids drove the market demand to reach heights in the 2014 period.
The boom in the investments in fracking technologies and the increased number of fractured wells in America is revving up the demand for fracking chemicals. Hydraulic fracturing remains a dominating technique in the USA market and almost 59% of the crude oil in the USA is produced by fracking, affecting positively the market for chemicals exploited in fracking. Hydraulic fracturing in the USA was responsible for producing 6.44 barrels of crude oil as per the U.S. Energy Information Administration database for the year 2018.
Other factors that influence the market demand are the oil prices apart from the growing demand for oil and gas. The engagement of large companies in the fracking industry also adds to large market demand for chemicals and distinct fluids for fracking. Chevron Corp and Conoco Phillips Co are some of the eminent players engaged in the fracking of wells.
As the export market for natural gas rises, and regions establish their drilling sites, the market will enhance giving a major boost to the investment in fracking techniques.
The environmental concerns associated with the fracking and European Union’s strict policy regulations on the ban of drilling of shale gas would work to hamper the growth of the market.
Fracking Fluids and Chemicals Market: By Function
Friction reduction is a function performed by the fracking fluids and would help the market to prosper in the upcoming years. Friction reducers act to smoothen the process of stimulation and drilling and reduce the friction in the shales and coal beds. Companies across the globe are developing friction reducers that meet the needs of the consumers. The type HiRate MAXX and HiRate Plus offers the benefits of cost-saving, increased operational efficiency, high-level friction reduction, and increased safety of the labor.
Biocides as a component of the fracking fluids would have a significant market presence given their essential role in the development of shale gas. Biocides are useful in getting rid of the bacteria that deteriorate the quality of the wells, limit the efficiency of extraction of oil and gas process and that produces toxic sulfide gas. The unparalleled view on the efficiency of biocides strengthens the hydraulic fracturing position and soars the market demand for the coming years. As shale gas has a booming market in the United States and a promising market in India, the exploitation of biocides at a large scale is possible.
Fracking Fluids and Chemicals Market: By Fluid Type
Slickwater is a type of water-based fluid that contributes to the rising segment’s demand. Slickwater is being preferred over gel-based fluids. The slickwater technique is economical and more efficient in the extraction process of oil. The switch to the slickwater process is taking place as technologies become more advanced and demand for shale gas rises across the globe. This technique enables high-speed pumping - improving the recovery rate of hydrocarbons. The method is believed to overcome the difficult exploration resources if combined with horizontal drilling. As mass consumption of oil rises across the globe, the need for such techniques will also rise in the market benefitting the companies engaged in fracking.
Foam based domain as the preferred choice for fluid in fracturing is observed to have high demand as it helps in raising the production of oil, reducing the water cuts in the well, and also reduce the dependency on the gelling agents.
Fracking Fluids and Chemicals Market: By Region
North America will occupy a dominating position in this market given the rise of fractured wells in the region. USA’s rising extraction of oil globally will speed up the market demand making more use of frictional reducers and foam-based fluid to smoothen the extraction process. As the USA accounts for a high number of hydraulic fractured wells, the market in the region would see significant investment from big companies in oil and gas exploration. Recent data estimates by Baker Huge also showed that active oil rigs in the USA were up from 7 to 356. Such estimates raise the region’s drilling capacity and also the market demand in the region.
The Asia Pacific would emerge as an eminent player in this market as the region expands its exploration capacity. India’s rising demand for shale gas is met through the country’s constant efforts to explore shale gas reserves which are spread across 56 sites. The government’s policy initiatives to allow for fracking also sets the market to exhibit a strong position in the country and region. China’s mature fracking market also adds to the positive regional growth.
Market Share and Competitive Analysis
Ashland, Baker Huges, Chevron Corp., BASF, ExxonMobil, Weatherford International Clariant, Conoco Phillips Co, Albemarle, AkzoNobel, Schlumberger, Odfjell Drilling, and Halliburton are important players in this market.
Please note: This is not an exhaustive list of companies profiled in the report.
In January 2021, Conoco Phillips Co announced that it had acquired the Concho to increase its visibility in the Permian Basin.
In November 2020, Odfjell Drilling announced that it signed a contract with Equinor to drill at least 27 wells.
In July 2017, Bakers Huges and GE Oil and Gas collaborated to form a company to improve the efficiencies of the oil and gas operators.
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The Global Fracking Fluids and Chemicals Market has been studied from the year 2019 till 2026. However, the CAGR provided in the report is from the year 2021 to 2026. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.
The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply-side analysis for the Fracking Fluids and Chemicals Market.
The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.
Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the company and customer analytics.
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